Nearly one-quarter (23%) of financial advisors are “at risk” of leaving their current firms, with dissatisfaction greatest among the bank and national wirehouse channels, according to a recent report from the group formerly known as Cogent Research, which is now part of Market Strategies International and goes by the handle Cogent Reports at Market Strategies.

And it’s the wirehouse channel––with its average assets per advisor of $123 million versus $81 million among potential “breakaway” brokers overall––who represent the most attractive targets among this group. The Advisor Channel Migration Trends Study was an online survey conducted this past spring of 1,749 financial advisors that included 396 potential breakaway advisors in the national, regional, independent and bank broker-dealer channels who said they’re likely to switch firms within the next 24 months.

Forty-nine percent of respondents said they would likely consider LPL Financial as a place to jump ship to, followed by 44% who said the same thing about Raymond James. 

Wells Fargo Advisors ranked third (37%), followed by a tie between UBS and Commonwealth Financial (29%), and a tie between Merrill Lynch, Morgan Stanley Wealth Management and Ameriprise Financial (28%).

“LPL and Raymond James appear most successful in emphasizing the characteristics that matter most to advisors considering a move, including independent platforms, a destination for greater independence and superior operational support,” said Meredith Lloyd Rice, senior product director and author of the report.
Earning potential is the top reason advisors might consider changing firms, while getting access to a better investment solution for clients was another key reason, particularly among wirehouse advisors.